I'm skeptical about ever getting rid of nutgrass. I'm also skeptical about SedgeHammer doing the deed. I tried it once a few years or so ago and it only made a temporary dent in the nutgrass. I don't know if it would do any harm to your dichondra or any other surrounding plants. I only know that getting rid of nutgrass is a real booger.
If you've ever pulled or dug any up then you might have seen the first nut. And maybe even seen the teeny tiny little root that has another nut. And another. It can grow them down as well as down and across. Too bad the squirrels won't help.
Would like to hear back if you find that SedgeHammer or anything else works on nutgrass. Thanks.
Good luck!